Lower Taxes And Energy Costs Needed Urgently

Allister Heath's article this morning in City A.M. was one of the most depressing articles I have ever read about our economy. If you haven't seen it you can read it here. It is difficult to see how matters can be turned around in time for the next election without some kind of miracle. Miracles don't happen but there is one light flickering at the end of a long tunnel which if it is real could well help the world recover its economic health more quickly than otherwise looks to be the case. The flickering light of hope is the implosion of the euro. Although only said sotto voce at this time Germany's exit from the euro is now being talked about (by Martin Wolf of the FT for one) as a less scary option than other courses of action. Furthermore the euro intensified troubles in Spain, which threaten its status as a country and at the worst could lead to a military coup, means Spain would benefit from its exit from the euro - a far less awful outcome than the loss of its democracy. It just needs one country to exit the euro for others to see that such action will not lead to the catastrophe prophesied by euro fanatics. It will not be a painless process but at least those countries that do choose this route will regain their currency sovereignty, be able to devalue and eventually achieve a healthier economy - see Iceland for example. Once one country demonstrates the advantages of leaving the euro others will follow. Growth will then develop and it will be this that will help the world and the UK recover from this continuing financial crisis. It really is urgent that the euro breaks up without further delay. Fiddling around with ideas of ever closer union is like Nero fiddling while Rome burns. One thing for sure though that the UK does not need in this time of gloom is increased taxes. We desperately need lower taxes and lower energy costs too. Cameron and Osborne, despite the LibDems objections, must have the guts to push tax cuts and shale exploitation through as a matter of urgency. There is not a moment to lose.